WOODBURY — For the first time since its founding in 1997, Main Street Woodbury is facing the prospect of losing its public funding from the city.

Woodbury City Council on Tuesday renewed an annual agreement to receive a $45,000 grant from the Gloucester County Improvement Authority — funds that are traditionally given directly to Main Street Woodbury to pay its executive director’s salary.

However, Council President Bill Fleming, with the support of Mayor Bill Volk, is now leaving the question open as to whether that money could be used to promote economic development in other ways.

“At this point, the council is voting on a shared services agreement with the county to get the funds,” said Fleming. “It’s going to be up to the council regarding what to do with it.

“We’re going to be meeting with Main Street sometime in the near future to discuss it.”

The council president later added that a discussion on the future self-sufficiency of Main Street Woodbury, a private non-profit, “should take place.”

Speaking after the meeting, Fleming explained that recent changes at the downtown merchant group led him to consider if the county grant could be used elsewhere.

“We’re in a year where the executive director left under whatever circumstances, and the (Fall Arts Festival) has taken a lot of their time and effort, and I think it’s time we sit and think about where we go from here,” he said. “It makes sense to me to not put any strings on the money.”

Sitting nearby, the mayor added “It makes sense to me, too.”

Main Street Woodbury President Craig Klayman addressed council at Tuesday’s meeting, stating he hopes to be “part of that discussion” with the city.

After the meeting, he said the group’s board of trustees — made up of representatives from downtown businesses — will have to review its options.

“If we don’t receive the funding, we would have to curtail some services,” he said. “That could mean events and fundraisers, as well as efforts to get grants, because it’s the executive director who applies for those.”

“This is the first time we’ve ever been in a position where we could possibly not get that funding,” said Carter, who has previously served as president and board member at Main Street. “We’re now in our fourth month without an executive director. The state guidelines say you should only go six months without one.”

Fleming said the city will attempt to settle its issues with Main Street Woodbury before seeking other avenues for the grant money.

However, Committeewoman Heather Tierney point out that it will ultimately fall to the council president to place a vote on the agenda.

“You say the council will decide, but to get on the agenda it has to go through you,” said Tierney to Fleming. “So, how is this going to be decided?”

Fleming stated he would prefer the council’s economic development committee — made up of David Trovato, Richard Hock and Gwendolyn Joyce Brown — make that determination. However, he added that he could create an ad hoc committee to take on the issue if the council desired.